0001| HOUSE BILL 291 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| LARRY A. LARRANAGA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO MOTOR VEHICLE INSURANCE; ENACTING THE PERSONAL | 0012| CHOICE AUTO INSURANCE ACT; AMENDING AND ENACTING SECTIONS OF | 0013| THE NMSA 1978. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0017| through 25 of this act may be cited as the "Personal Choice | 0018| Auto Insurance Act". | 0019| Section 2. [NEW MATERIAL] LEGISLATIVE FINDINGS-- | 0020| PURPOSES OF ACT.-- | 0021| A. The legislature finds that under former law, | 0022| New Mexico motorists were required to purchase liability | 0023| insurance primarily for the benefit of others. To protect | 0024| themselves and their family members from other motorists who | 0025| chose not to comply with the law, motorists had to purchase | - 1 - 0001| additional insurance coverage. Motorists who did not purchase | 0002| liability insurance required by law were nonetheless permitted | 0003| to make liability claims against motorists who had purchased | 0004| liability insurance. That system for compensating injured | 0005| motorists was inefficient and over compensated persons with | 0006| non-serious injuries. The costs of compensating injured | 0007| persons were compounded by extraordinary litigation and claim- | 0008| processing costs that were ultimately borne by insurance | 0009| consumers and taxpayers of New Mexico. | 0010| B. The purposes of the Personal Choice Auto | 0011| Insurance Act are to: | 0012| (1) give owners of motor vehicles the option | 0013| to reduce insurance costs by choosing how they will satisfy | 0014| the requirements of the Mandatory Financial Responsibility | 0015| Act. Under the Personal Choice Auto Insurance Act, motorists | 0016| may choose to: | 0017| (a) forgo their right to sue for non- | 0018| economic and compensated economic damages arising out of a | 0019| motor vehicle accident except in certain circumstances, by | 0020| purchasing a personal compensation policy; or | 0021| (b) retain the right to recover for | 0022| damages under tort principles by rejecting purchase of a | 0023| personal compensation policy as provided in the Personal | 0024| Choice Auto Insurance Act; | 0025| (2) require insurers to make certain optional | - 2 - 0001| coverages available at additional cost to motorists who choose | 0002| to purchase a personal compensation policy; | 0003| (3) encourage motorists to comply with | 0004| Mandatory Financial Responsibility Act requirements by | 0005| limiting uninsured motorists' rights to recover for loss; | 0006| (4) speed the administration of justice, ease | 0007| the burden of litigation on New Mexico courts, decrease the | 0008| expenses associated with litigation and create a system of | 0009| arbitration of claims for personal compensation benefits; and | 0010| (5) correct imbalances and abuses in the | 0011| operation of the motor vehicle accident insurance system, | 0012| encourage prompt medical treatment and rehabilitation, provide | 0013| offsets to avoid duplicate recovery and require medical | 0014| examinations. | 0015| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0016| Personal Choice Auto Insurance Act: | 0017| A. "accidental bodily injury" means bodily injury, | 0018| sickness, disease or death arising out of a motor vehicle | 0019| accident, where the motor vehicle accident is unintended by | 0020| the injured person; | 0021| B. "cause of action for injury" means a claim for | 0022| accidental bodily injury caused by the negligence or | 0023| intentional misconduct of another person, including a claim by | 0024| a person other than the injured person based on such injury, | 0025| including loss of consortium, companionship or another | - 3 - 0001| derivative claim; | 0002| C. "dependent" means all individuals related to | 0003| another person by blood, affinity or adoption who reside in | 0004| the same household with the person and receive financial or | 0005| services support from the person; | 0006| D. "driving under the influence of intoxicating | 0007| liquor or drugs" means an individual has been convicted, as | 0008| defined in Subsection B of Section 66-5-28 NMSA 1978, of | 0009| violating Subsection A, B, C or D of Section 66-8-102 NMSA | 0010| 1978; | 0011| E. "economic loss" means pecuniary loss and | 0012| monetary expense incurred by or on behalf of an injured person | 0013| as the result of an accidental bodily injury; | 0014| F. "injured person" means an individual who | 0015| sustains accidental bodily injury, or the personal | 0016| representative of a deceased individual's estate; | 0017| G. "insurer" means an insurer or qualified self- | 0018| insurer providing coverage on motor vehicles pursuant to the | 0019| provisions of the Personal Choice Auto Insurance Act; | 0020| H. "intentional misconduct" means conduct whereby | 0021| bodily injury is intentionally caused by a person who acts or | 0022| fails to act for the purpose of causing bodily injury, or who | 0023| knows or reasonably should have known that bodily injury is | 0024| substantially certain to result. A person does not | 0025| intentionally cause bodily injury: | - 4 - 0001| (1) merely because his act or failure to act | 0002| is intentional; or | 0003| (2) if the act or omission causing bodily | 0004| injury is for the purpose of averting bodily harm to the | 0005| person so acting or to another; | 0006| I. "loss of income from work" means: | 0007| (1) if the injured person was employed or | 0008| self-employed at any time during the year preceding an | 0009| accident, eighty percent of the average weekly amount the | 0010| injured person would have earned, or could have reasonably | 0011| expected to earn but for the accidental bodily injury, through | 0012| employment in his usual occupation or profession, reduced by | 0013| either: | 0014| (a) eighty percent of the average | 0015| weekly amount received from substitute employment or self- | 0016| employment; or | 0017| (b) the average weekly amount of income | 0018| the injured person would have earned in available appropriate | 0019| substitute employment that the person was capable of | 0020| performing but unreasonably failed to undertake; or | 0021| (2) if the injured person was unemployed, the | 0022| amount of unemployment compensation benefits the injured | 0023| person would have been eligible to receive but for the | 0024| accidental bodily injury, except that "loss of income from | 0025| work" does not include any loss of income after an injured | - 5 - 0001| person's death; | 0002| J. "medical expenses" means reasonable expenses | 0003| incurred by or on behalf of an injured person for necessary | 0004| medical, chiropractic, surgical, dental, ambulance, hospital, | 0005| medical rehabilitation, physical therapy and professional | 0006| nursing services and drugs, medically necessary equipment | 0007| designed primarily for a medical purpose, eyeglasses, hearing | 0008| aids and prosthetic devices, except for those expenses | 0009| incurred when accidental bodily injury is first discovered and | 0010| treated more than one year after the date of the accident or | 0011| any expense incurred more than three years after the date of | 0012| the accident. "Medical expenses" does not include: | 0013| (1) any portion of the charge for a room in | 0014| any hospital, clinic, convalescent or nursing home, extended | 0015| care facility or any similar facility in excess of the | 0016| reasonable and customary charge for semi-private | 0017| accommodations unless otherwise medically necessary; | 0018| (2) any portion of a charge or fee for any | 0019| treatments, services, products or procedures that are | 0020| experimental in nature, for research not primarily designed to | 0021| serve a medical purpose or not commonly and customarily | 0022| recognized throughout the medical profession or, in the case | 0023| of chiropractic care, not commonly and customarily recognized | 0024| throughout the chiropractic profession in the United States as | 0025| appropriate for treatment of accidental bodily injury; or | - 6 - 0001| (3) that portion of any charge for services, | 0002| products or facilities that exceeds the health care provider's | 0003| reasonable and customary charge for like services, products or | 0004| facilities; | 0005| K. "medical rehabilitation" means medically | 0006| necessary rehabilitation services designed to reduce the | 0007| disability and dependence of an injured person and to restore | 0008| the person, to the extent reasonably possible, to his pre- | 0009| accident level of physical functioning; | 0010| L. "motor vehicle" means a self-propelled vehicle | 0011| of a kind required to be registered under New Mexico law for | 0012| use on public streets and highways, other than a vehicle with | 0013| three or fewer load-bearing wheels; | 0014| M. "motor vehicle insurance policy" means that | 0015| term as defined in Section 59A-7-7.1 NMSA 1978; | 0016| N. "non-economic loss" means any loss other than | 0017| economic loss, including pain, suffering, loss of enjoyment of | 0018| life, mental anguish, emotional distress and all other non- | 0019| economic damages; | 0020| O. "occupying" means to be in, upon or engaged in | 0021| the immediate act of entering into or alighting from a motor | 0022| vehicle; | 0023| P. "operation, maintenance or use" means | 0024| operation, maintenance or use of a motor vehicle as a motor | 0025| vehicle, including occupying the vehicle. "Operation, | - 7 - 0001| maintenance or use" does not include: | 0002| (1) conduct in the course of the business of | 0003| repairing, servicing, washing, selling, maintaining or | 0004| manufacturing motor vehicles unless the conduct occurs off the | 0005| business premises; or | 0006| (2) conduct in the course of loading or | 0007| unloading the motor vehicle unless the conduct occurs while | 0008| engaged in the operation, maintenance or use of the vehicle; | 0009| Q. "other person responsible for maintaining | 0010| insurance coverage" means a person with a statutory or | 0011| contractual responsibility of maintaining insurance coverage | 0012| on a motor vehicle, including lessees and employees who are | 0013| responsible for insuring an employer-furnished vehicle; | 0014| R. "pedestrian" means a person not occupying a | 0015| motor vehicle; | 0016| S. "personal compensation benefits" means benefits | 0017| with an aggregate limit of at least fifteen thousand dollars | 0018| ($15,000) per person per accident for economic loss resulting | 0019| from accidental bodily injury, as follows: | 0020| (1) medical expenses; | 0021| (2) loss of income from work up to two | 0022| hundred dollars ($200) per week for not more than three years | 0023| from the date of the accident that caused the accidental | 0024| bodily injury; | 0025| (3) if the injured person is not receiving | - 8 - 0001| benefits for loss of income from work, replacement services | 0002| loss up to one hundred dollars ($100) per week for not more | 0003| than three years from the date of the accident that caused the | 0004| accidental bodily injury; and | 0005| (4) a death benefit of fifteen thousand | 0006| dollars ($15,000) payable to the dependents or, if none, to | 0007| the estate of the decedent, if death occurs not more than one | 0008| year after the date of the accident causing the accidental | 0009| bodily injury; | 0010| T. "personal compensation chooser" means a | 0011| personal compensation insured or a person other than an | 0012| uninsured motorist who has not exercised his right pursuant to | 0013| Section 5 of the Personal Choice Auto Insurance Act to reject | 0014| that act's limitations on tort rights and liabilities; | 0015| U. "personal compensation insured" means: | 0016| (1) the named insured of a personal | 0017| compensation policy or a resident relative, other than a tort | 0018| chooser; | 0019| (2) a person, other than a tort chooser, who | 0020| sustains accidental bodily injury while occupying the motor | 0021| vehicle described on the declarations page of a personal | 0022| compensation policy; or | 0023| (3) with respect to accidents within New | 0024| Mexico, a pedestrian, other than a tort chooser, who sustains | 0025| accidental bodily injury through being struck by the motor | - 9 - 0001| vehicle described on the declarations page of a personal | 0002| compensation policy; | 0003| V. "personal compensation policy" means an | 0004| insurance policy or qualified self-insurance plan that | 0005| provides personal compensation benefits, property damage | 0006| liability and compulsory financial responsibility coverage | 0007| applicable in jurisdictions other than New Mexico in at least | 0008| the minimum limits required by the Personal Choice Auto | 0009| Insurance Act; | 0010| W. "property damage liability" means liability | 0011| insurance coverage with a limit of at least ten thousand | 0012| dollars ($10,000) per accident, exclusive of interest and | 0013| costs, for damage to property in any one accident; | 0014| X. "replacement services loss" means expenses | 0015| reasonably incurred for ordinary and necessary services from | 0016| others in lieu of those the injured person would have | 0017| performed, not for income but for the benefit of the injured | 0018| person's family, if he had not been injured. "Replacement | 0019| services loss" does not include expenses for services | 0020| performed by any person residing in the household of the | 0021| injured person, services performed by any person related to | 0022| the injured person or services performed after the injured | 0023| person's death; | 0024| Y. "resident relative" means an individual related | 0025| to a named insured of a motor vehicle insurance policy by | - 10 - 0001| blood, affinity or adoption and who customarily resides in the | 0002| same household with the named insured. An individual | 0003| customarily resides in the same household if the individual | 0004| primarily makes his home in the same family unit, even though | 0005| temporarily living elsewhere; | 0006| Z. "superintendent" means the superintendent of | 0007| insurance; | 0008| AA. "tort chooser" means a person who has | 0009| exercised his right pursuant to Section 5 of the Personal | 0010| Choice Auto Insurance Act to reject that act's limitations on | 0011| tort rights and liabilities; | 0012| BB. "tort coverage" means coverage under a motor | 0013| vehicle bodily injury and property damage liability policy in | 0014| which a tort chooser involved in an accident with a personal | 0015| compensation chooser recovers damages from the tort chooser's | 0016| own insurer for economic and non-economic loss that the tort | 0017| chooser is barred from recovering from the personal | 0018| compensation chooser. The coverage limit shall be at least | 0019| equal to the bodily injury liability limit under the policy; | 0020| and | 0021| CC. "uncompensated economic loss" means that | 0022| portion of economic loss arising out of accidental bodily | 0023| injury that exceeds the total of benefits provided by | 0024| applicable personal compensation policies and benefits | 0025| received from all other sources as reimbursement for or | - 11 - 0001| arising from accidental bodily injury, other than life | 0002| insurance benefits, regardless of the nature or number of | 0003| benefit sources available or their form. "Uncompensated | 0004| economic loss" does not include: | 0005| (1) the amount of economic loss resulting | 0006| from application of a deductible under a personal compensation | 0007| policy; | 0008| (2) the amount of economic loss that would | 0009| have been covered under a personal compensation policy | 0010| providing minimum benefits that the injured person or his | 0011| resident relative was required to maintain by the Personal | 0012| Choice Auto Insurance Act but failed to maintain in effect; or | 0013| (3) the first fifteen thousand dollars | 0014| ($15,000) of economic loss sustained by a tort chooser, | 0015| regardless of whether such loss is recovered from any other | 0016| source. | 0017| Section 4. [NEW MATERIAL] MOTOR VEHICLE INSURANCE | 0018| REQUIREMENTS.-- | 0019| A. Every owner or other person responsible for | 0020| maintaining insurance coverage on a motor vehicle, other than | 0021| those motor vehicles listed as exempt in Section 66-5-207 NMSA | 0022| 1978, shall be covered by a personal compensation policy | 0023| providing personal compensation benefits, property damage | 0024| liability and compulsory financial responsibility coverage | 0025| applicable in jurisdictions other than New Mexico in at least | - 12 - 0001| the minimum limits required by the Personal Choice Auto | 0002| Insurance Act, unless the owner or other person responsible | 0003| for maintaining insurance coverage is a tort chooser. | 0004| B. A tort chooser is not eligible for a personal | 0005| compensation policy and shall comply with the provisions of | 0006| the Mandatory Financial Responsibility Act by obtaining a | 0007| motor vehicle bodily injury and property damage liability | 0008| policy or providing other evidence of financial | 0009| responsibility. | 0010| C. The personal compensation policy required by | 0011| this section may be provided through insurance or a qualified | 0012| plan of self-insurance approved by the superintendent. The | 0013| superintendent may approve a self-insurance plan and issue a | 0014| certificate of self-insurance if the superintendent is | 0015| satisfied that the plan is actuarially sound and will continue | 0016| to have sufficient financial assets to respond to claims. | 0017| D. The named insured of a personal compensation | 0018| policy may waive benefits for loss of income from work for an | 0019| appropriate rate reduction by completing a certification form | 0020| prescribed by the superintendent stating under oath that | 0021| neither the named insured or any resident relative has earned | 0022| income from regular employment during the past thirty days, | 0023| and that none of them expects to earn income from regular | 0024| employment for at least one hundred eighty days from the date | 0025| the certification is executed. A properly completed form | - 13 - 0001| shall be conclusive proof of the insured's intent to waive | 0002| loss of income benefits. | 0003| E. Prior to the inception of a personal | 0004| compensation policy, the insurer shall offer the named insured | 0005| the additional, optional insurance coverages specified in | 0006| Subsection F of this section. A named insured's decision to | 0007| purchase or not to purchase such coverages is binding on all | 0008| insureds covered by the policy and applies to all renewals and | 0009| replacement policies until the named insured requests a | 0010| change. | 0011| F. The additional optional insurance coverages | 0012| required to be made available under a personal compensation | 0013| policy at additional cost are: | 0014| (1) personal compensation benefits covering | 0015| loss in excess of fifteen thousand dollars ($15,000) per | 0016| person, in optional increments up to not less than an | 0017| aggregate limit of one hundred thousand dollars ($100,000) per | 0018| person per accident. Except as provided in Subsection D of | 0019| this section, if the aggregate limit is one hundred thousand | 0020| dollars ($100,000) or more, the sublimit for loss of income | 0021| from work shall be not less than five hundred dollars ($500) | 0022| per week; | 0023| (2) motor vehicle bodily injury liability | 0024| insurance with a limit of not less than fifteen thousand | 0025| dollars ($15,000) per person per accident, exclusive of | - 14 - 0001| interest and costs, due to accidental bodily injury and, | 0002| subject to the per-person limit, an aggregate limit of not | 0003| less than thirty thousand dollars ($30,000), exclusive of | 0004| interest and costs; and | 0005| (3) scheduled benefits coverage with limits | 0006| of at least ten thousand dollars ($10,000) per person per | 0007| accident, in optional increments up to not less than one | 0008| hundred thousand dollars ($100,000) per person per accident. | 0009| Scheduled benefits coverage shall provide benefits, payable in | 0010| addition to and without regard to any other benefits payable, | 0011| for loss from accidental bodily injury sustained by the named | 0012| insured of a personal compensation policy or a resident | 0013| relative who is not a tort chooser while engaged in the | 0014| operation, maintenance or use of a motor vehicle or as a | 0015| pedestrian. Scheduled benefits coverage shall be paid as | 0016| follows, provided that only the largest applicable benefit | 0017| shall be paid for any one person for a single accident: | 0018| (a) loss of life, the principal sum; | 0019| (b) permanent and total disability, the | 0020| principal sum; | 0021| (c) loss of two or more members, the | 0022| principal sum; | 0023| (d) loss of one member, one-half of the | 0024| principal sum; | 0025| (e) loss of thumb and index finger on | - 15 - 0001| the same hand, one-fourth of the principal sum; | 0002| (f) permanent and total loss of | 0003| hearing, one-half of the principal sum; | 0004| (g) permanent and total loss of the | 0005| sense of smell or taste, one-fourth of the principal sum; | 0006| (h) loss of a finger or toe, one-eighth | 0007| of the principal sum; | 0008| (i) serious permanent disfigurement, | 0009| one-eighth of the principal sum; and | 0010| (j) permanent and total loss of use of | 0011| an internal organ, one-eighth of the principal sum. | 0012| G. As used in Paragraph (3) of Subsection F of | 0013| this section: | 0014| (1) "loss" means, with regard to a hand or | 0015| foot, permanent, complete loss of use of the hand or foot, or | 0016| actual severance of the hand or foot through or above the | 0017| wrist or ankle joints; with regard to an eye, complete, | 0018| irrecoverable loss of sight; with regard to a thumb, | 0019| permanent, complete loss of use of the thumb or actual | 0020| severance of the thumb through the proximal phalanx or | 0021| metacarpal; with regard to the index finger or any other | 0022| finger, permanent, complete loss of use of the particular | 0023| finger or actual severance of the particular finger through | 0024| the middle or proximal phalanx or metacarpal; and with regard | 0025| to any toe, actual severance through the proximal phalanx or | - 16 - 0001| metacarpal of the particular toe; | 0002| (2) "member" means hand, foot or eye; | 0003| (3) "permanent and total disability" means, | 0004| for persons who have reached the age of majority or who are | 0005| working full time at the time of the accidental bodily injury, | 0006| the insured's complete inability after one year of continuous | 0007| total disability to engage in an occupation or employment for | 0008| which the insured is fitted by reason of education, training | 0009| or experience for the remainder of the insured's life. As | 0010| used in this paragraph, "continuous total disability" means | 0011| the insured's complete inability during the first year of | 0012| disability to perform every duty of the insured's occupation. | 0013| Such inability shall commence within thirty days after the | 0014| date of the accident. For persons who are both under the age | 0015| of majority and not working full time at the time of the | 0016| accidental bodily injury, "permanent and total disability" | 0017| means for two consecutive years having an abnormal | 0018| electroencephalography and abnormal brain magnetic resonance | 0019| image or the presence of seizures for two consecutive years; | 0020| and | 0021| (4) "principal sum" means the coverage limit | 0022| for scheduled benefits coverage. | 0023| H. An insurer may offer: | 0024| (1) limits higher than those required by this | 0025| section; | - 17 - 0001| (2) deductible and coinsurance options for | 0002| the coverage described in Paragraph (1) of Subsection F of | 0003| this section; | 0004| (3) a limit on the coverage specified in | 0005| Paragraph (2) of Subsection F of this section on a combined | 0006| limit basis instead of a split limits basis; and | 0007| (4) coverages in addition to those required | 0008| by this section, including collision and comprehensive | 0009| physical damage. | 0010| I. Any coverages provided pursuant to this section | 0011| shall be subject to the premium rates, policy forms, terms, | 0012| limitations, conditions and exclusions approved by the | 0013| superintendent. | 0014| J. The coverages provided pursuant to this section | 0015| shall be subject to the provisions of Section 8 and Section 10 | 0016| of the Personal Choice Auto Insurance Act. | 0017| K. Each insurer shall furnish the first named | 0018| insured with a card constituting evidence of financial | 0019| responsibility and proof of insurance, provided that the card | 0020| shall not be deemed to create insurance coverage if the policy | 0021| has, in fact, lapsed or been canceled on the date of the | 0022| accident. The card, insurance policy, insurance policy | 0023| binder, certificate of insurance or such other proof as may be | 0024| prescribed by the motor vehicle division of the taxation and | 0025| revenue department shall constitute sufficient proof of | - 18 - 0001| insurance and evidence of financial responsibility for | 0002| purposes of New Mexico law. | 0003| Section 5. [NEW MATERIAL] RIGHT OF REJECTION-- | 0004| UNIFORMITY OF CHOICE.-- | 0005| A. Any person or a resident relative, including a | 0006| person who is not the owner or other person responsible for | 0007| maintaining insurance coverage on a motor vehicle, may execute | 0008| a form prescribed by the superintendent rejecting the | 0009| limitations on tort rights and liabilities of the Personal | 0010| Choice Auto Insurance Act and shall file the form with the | 0011| superintendent, who shall maintain the forms as public | 0012| records. Rejection is effective with respect to any accident | 0013| occurring after the date and time the superintendent receives | 0014| the rejection form. Rejection for a minor or incapacitated | 0015| person shall be made on his behalf by his parent or guardian | 0016| and shall remain effective until revoked or until the person | 0017| is no longer a minor or incapacitated, whichever comes first. | 0018| Completion and filing of the form prescribed by the | 0019| superintendent shall be conclusive proof that the person | 0020| completing the form made an informed and knowledgeable | 0021| decision concerning rejection. Rejection remains effective | 0022| until revoked in writing on a form prescribed by the | 0023| superintendent. | 0024| B. Each person so rejecting, if he is the owner or | 0025| other person responsible for maintaining insurance coverage on | - 19 - 0001| a motor vehicle, shall maintain in effect a policy of motor | 0002| vehicle bodily injury and property damage liability insurance | 0003| with at least the minimum coverages, including tort coverage, | 0004| and limits required by the Personal Choice Auto Insurance Act | 0005| and the Mandatory Financial Responsibility Act. | 0006| C. A person who effectively rejects in compliance | 0007| with Subsections A and B of this section retains all tort | 0008| rights and tort liabilities to the extent provided in the | 0009| Personal Choice Auto Insurance Act. No such person is | 0010| entitled to collect personal compensation benefits under any | 0011| policy unless he has subsequently revoked the rejection as | 0012| provided in Subsection D of this section. | 0013| D. Revocation of rejection forms shall be made on | 0014| a form prescribed by the superintendent. Revocation becomes | 0015| effective as of the date and time the superintendent receives | 0016| it. Revocation remains effective until superseded by the | 0017| filing of a rejection form. Regardless of the nonfiling of | 0018| subsequent revocation forms, a person eligible for payment of | 0019| personal compensation benefits as a named insured under a | 0020| personal compensation policy shall be deemed to have withdrawn | 0021| any rejection. | 0022| E. In order to minimize conflict in choices | 0023| between personal compensation choosers and tort choosers, | 0024| insurers are authorized to maintain underwriting rules that | 0025| require uniformity of choice by the named insured and all | - 20 - 0001| resident relatives. | 0002| F. The superintendent shall adopt and promulgate | 0003| rules governing: | 0004| (1) rejection and revocation of such | 0005| rejection pursuant to this section, including situations | 0006| involving multiple vehicles and multiple policies in the same | 0007| household; and | 0008| (2) a system for maintaining and providing | 0009| access to forms filed pursuant to this section. | 0010| Section 6. [NEW MATERIAL] CONSUMER INFORMATION | 0011| PROGRAM.-- | 0012| A. The superintendent shall establish and maintain | 0013| a program to inform consumers about the comparative costs of a | 0014| personal compensation policy and a motor vehicle bodily injury | 0015| and property damage liability policy, including with the | 0016| latter required minimum uninsured motorist coverage, as well | 0017| as the benefits, rights and responsibilities under each type | 0018| of insurance. The program shall include procedures for | 0019| informing insureds of their right of rejection. | 0020| B. The superintendent shall prepare a budget | 0021| reflecting costs associated with carrying out his | 0022| responsibilities under the Personal Choice Auto Insurance Act. | 0023| The superintendent's budgeted costs shall be assessed annually | 0024| to all motor vehicle insurers doing business in New Mexico pro | 0025| rata on the basis of earned premium reported for the preceding | - 21 - 0001| calendar year. | 0002| C. Any person, after being provided information in | 0003| a form approved by the superintendent explaining the basis for | 0004| choosing between being a personal compensation chooser and a | 0005| tort chooser, shall be bound to the terms of the status and | 0006| coverage chosen and is precluded from claiming liability | 0007| against any other person based on being inadequately informed. | 0008| Section 7. [NEW MATERIAL] APPLICATION OF PERSONAL | 0009| COMPENSATION BENEFITS AND COVERAGES TO OTHER JURISDICTIONS.-- | 0010| A. A personal compensation policy shall pay | 0011| personal compensation benefits for accidental bodily injury of | 0012| a personal compensation insured sustained within the United | 0013| States, its territories or possessions or Canada. | 0014| B. A personal compensation policy shall, if an | 0015| insured becomes subject to a compulsory financial | 0016| responsibility or similar law of another jurisdiction of the | 0017| United States, its territories or possessions or Canada, | 0018| provide the coverage required by the law of that jurisdiction. | 0019| Section 8. [NEW MATERIAL] PERSONS NOT ENTITLED TO | 0020| PERSONAL COMPENSATION BENEFITS--LIMITATIONS ON PERSONAL | 0021| COMPENSATION BENEFITS.-- | 0022| A. Notwithstanding any other provision of the | 0023| Personal Choice Auto Insurance Act, an insurer is not | 0024| obligated to provide personal compensation benefits for any | 0025| injured person who: | - 22 - 0001| (1) was injured in a motor vehicle accident | 0002| while committing a felony or while voluntarily operating or | 0003| occupying a vehicle known by him to be stolen; | 0004| (2) was injured while engaged in the | 0005| operation, maintenance or use of a motor vehicle owned by, | 0006| furnished to or available for the regular use of the injured | 0007| person, or a resident relative of the injured person, if such | 0008| motor vehicle is not covered by the policy against which a | 0009| claim is made; | 0010| (3) was injured as a pedestrian by a motor | 0011| vehicle owned by, furnished to or available for the regular | 0012| use of the injured person, or a resident relative of the | 0013| injured person, if the motor vehicle is not covered by the | 0014| policy against which a claim is made; | 0015| (4) was injured as a result of his | 0016| intentional misconduct. If a person dies as a result of his | 0017| intentional misconduct, the insurer is not obligated to | 0018| provide the person's dependents and estate his personal | 0019| compensation benefits; | 0020| (5) was an uninsured motorist at the time of | 0021| the accident causing the injuries. As used in this paragraph, | 0022| "uninsured motorist" means a person who is the owner of or | 0023| other person responsible for maintaining insurance coverage on | 0024| a motor vehicle pursuant to the Personal Choice Auto Insurance | 0025| Act but who has failed to maintain the coverage; | - 23 - 0001| (6) was injured while operating or occupying | 0002| a motor vehicle involved in an organized race or speed | 0003| contest; or | 0004| (7) is a tort chooser. | 0005| B. There shall be no coverage for the named | 0006| insured or any resident relative under a personal compensation | 0007| policy while operating or occupying a self-propelled vehicle | 0008| with three or fewer load-bearing wheels. | 0009| C. An insurer shall not be obligated to pay | 0010| personal compensation benefits, other than medical payments, | 0011| to or on behalf of any injured person who was driving under | 0012| the influence of intoxicating liquor or drugs. | 0013| D. Nothing in this section bars an insurer from | 0014| providing personal compensation benefits for any injured | 0015| person, otherwise excluded by this section, if the policy | 0016| clearly states that it provides the coverage. | 0017| Section 9. [NEW MATERIAL] PAYMENT OF PERSONAL | 0018| COMPENSATION BENEFITS.--Personal compensation benefits are | 0019| payable to any one of the following: | 0020| A. the injured person; | 0021| B. the parent or guardian of the injured person, | 0022| if the injured person is a minor or incapacitated; | 0023| C. a dependent or the personal representative of | 0024| the estate of the injured person; or | 0025| D. any person providing medical or other health | - 24 - 0001| care services, products or facilities for which payment is | 0002| due. | 0003| Section 10. [NEW MATERIAL] PRIORITY OF BENEFITS.-- | 0004| A. Personal compensation policies are liable to | 0005| pay personal compensation benefits in the following order of | 0006| priority up to their respective coverage limits: | 0007| (1) the personal compensation policy covering | 0008| a motor vehicle involved in the accident, if the injured | 0009| person was engaged in the operation, maintenance or use of the | 0010| motor vehicle or was a pedestrian injured by the motor vehicle | 0011| at the time of the accident; | 0012| (2) any personal compensation policy under | 0013| which the injured person is a named insured; | 0014| (3) any personal compensation policy under | 0015| which the injured person is a resident relative; and | 0016| (4) any personal compensation policy under | 0017| which the injured person qualifies as a personal compensation | 0018| insured other than as described in Paragraphs (1) through (3) | 0019| of this subsection. | 0020| B. Subject to the payment priorities in Subsection | 0021| A of this section, if a personal compensation insured is | 0022| entitled to benefits under more than one personal compensation | 0023| policy or coverage, the maximum recovery shall not exceed the | 0024| amount payable under the personal compensation policy with the | 0025| highest limit. | - 25 - 0001| C. If two or more insurers are obligated to pay | 0002| personal compensation benefits at the same priority, the | 0003| insurer against whom the claim is first made shall pay the | 0004| claim up to that insurer's policy limits as if wholly | 0005| responsible and may thereafter recover contribution pro rata | 0006| on the basis of coverage limits from any other insurer at the | 0007| same priority level. | 0008| D. For purposes of payment of personal | 0009| compensation benefits only, an unoccupied, parked motor | 0010| vehicle is not a motor vehicle involved in an accident unless | 0011| it was parked in such a way as to cause unreasonable risk of | 0012| injury. | 0013| Section 11. [NEW MATERIAL] COORDINATION OF BENEFITS.-- | 0014| The personal compensation insurer has the primary obligation | 0015| to indemnify its personal compensation insured who sustains | 0016| accidental bodily injury; provided that personal compensation | 0017| benefits are excess over and shall not duplicate the amount of | 0018| benefits an injured person recovers, or is entitled to | 0019| recover, under a state or federal workers' compensation law or | 0020| similar occupational injury law, based on the same accidental | 0021| bodily injury. | 0022| Section 12. [NEW MATERIAL] LIMITATIONS ON TORT RIGHTS | 0023| AND LIABILITIES--CLAIMS FOR UNCOMPENSATED ECONOMIC LOSS.-- | 0024| A. Except as provided otherwise in Subsection C or | 0025| D of this section: | - 26 - 0001| (1) no person, other than a tort chooser, | 0002| shall have a cause of action in tort or otherwise for | 0003| accidental bodily injury caused in whole or in part by the | 0004| operation, maintenance or use of a motor vehicle subject to | 0005| the Personal Choice Auto Insurance Act, other than for | 0006| uncompensated economic loss; and | 0007| (2) a tort chooser shall have no cause of | 0008| action in tort or otherwise against a personal compensation | 0009| chooser for accidental bodily injury caused in whole or in | 0010| part by the operation, maintenance or use of a motor vehicle | 0011| subject to the Personal Choice Auto Insurance Act, other than | 0012| for uncompensated economic loss. | 0013| B. Subject to the provisions of Subsection A of | 0014| this section and except as provided otherwise in Subsection C | 0015| or D of this section, an uninsured motorist shall not have a | 0016| cause of action to recover damages resulting from an accident | 0017| arising out of the operation, maintenance or use of a motor | 0018| vehicle from a personal compensation chooser or a tort chooser | 0019| for: | 0020| (1) the first fifteen thousand dollars | 0021| ($15,000) of economic loss resulting from accidental bodily | 0022| injury; or | 0023| (2) the first ten thousand dollars ($10,000) | 0024| of property damage. | 0025| C. As used in this section, "uninsured motorist" | - 27 - 0001| means a person who is the owner of or other person responsible | 0002| for maintaining insurance coverage on a motor vehicle subject | 0003| to the insurance requirements of the Personal Choice Auto | 0004| Insurance Act, but who fails to maintain the minimum required | 0005| coverages. | 0006| D. Any person shall have a cause of action under | 0007| common law tort principles for economic and non-economic loss | 0008| against any other person who causes accidental bodily injury | 0009| or motor vehicle property damage while committing a felony or | 0010| while driving under the influence of intoxicating liquor or | 0011| drugs. Insurers are prohibited from paying the damages | 0012| assessed against an insured pursuant to this subsection, | 0013| except for economic loss. | 0014| E. Any person shall have a cause of action under | 0015| common law tort principles for economic and non-economic loss | 0016| resulting from accidental bodily injury or property damage | 0017| caused by intentional misconduct of another person. Insurers | 0018| are prohibited from paying damages assessed against an insured | 0019| pursuant to this subsection. | 0020| F. Nothing in this section is intended to limit | 0021| any cause of action in tort or otherwise against a person | 0022| other than an individual who is engaged in the operation, | 0023| maintenance or use of a vehicle at the time of an accident. | 0024| Section 13. [NEW MATERIAL] CLAIMS FOR UNCOMPENSATED | 0025| ECONOMIC LOSS--SETTLEMENT PERIOD--ATTORNEY FEES.-- | - 28 - 0001| A. Any claimant seeking recovery for uncompensated | 0002| economic loss from another person, as authorized by the | 0003| Personal Choice Auto Insurance Act, shall make demand for | 0004| settlement in writing, accompanied by supporting documentation | 0005| and all relevant bills and employer records, to the person or | 0006| the person's insurer at least thirty days before filing any | 0007| lawsuit seeking damages against the person. The person | 0008| against whom the claim is made or his insurer shall reply in | 0009| writing to the demand prior to the last day of the settlement | 0010| period, or the person shall be deemed to have made no offer. | 0011| If any applicable statute of limitation would otherwise run | 0012| during the thirty-day settlement period, that statute of | 0013| limitation shall be tolled until the end of the second | 0014| business day after the last day of the settlement period. The | 0015| thirty-day settlement period shall begin to run on the day the | 0016| written demand is mailed or otherwise delivered. | 0017| B. If the claimant is unable to reach an agreement | 0018| with the person against whom the claim is made or the person's | 0019| insurer by the last day of the settlement period, the claimant | 0020| shall be entitled to file a lawsuit seeking uncompensated | 0021| economic loss based on common law tort principles. If the | 0022| claimant is deemed the prevailing party in the lawsuit as | 0023| provided in this subsection, he shall, in addition to any | 0024| damages awarded, be awarded reasonable attorney fees, not to | 0025| exceed one-third of the gross amount of the recovery, | - 29 - 0001| exclusive of interest and court costs; provided that if the | 0002| gross recovery exceeds one hundred thousand dollars | 0003| ($100,000), the maximum fee shall be limited to one-third of | 0004| the amount up to one hundred thousand dollars ($100,000) plus | 0005| fifteen percent of the amount in excess of one hundred | 0006| thousand dollars ($100,000). The claimant shall be deemed to | 0007| be the prevailing party if he is awarded damages, exclusive of | 0008| interest and court costs, in an amount equal to or greater | 0009| than the midpoint between the last written demand made during | 0010| the settlement period by the claimant and the last written | 0011| offer made during the settlement period by the person against | 0012| whom the claim is made or the person's insurer. | 0013| C. Nothing in this section shall be deemed to | 0014| prohibit the parties from compromising a claim at any time by | 0015| mutual agreement. | 0016| Section 14. [NEW MATERIAL] RIGHT OF SUBROGATION-- | 0017| CONDITIONS.--An insurer shall be subrogated, to the extent of | 0018| any personal compensation benefits paid, to all of the rights | 0019| of its insured with respect to an accident caused, in whole or | 0020| in part, by the fault of any person who is not a personal | 0021| compensation chooser. | 0022| Section 15. [NEW MATERIAL] PAYMENT OF INSURANCE | 0023| BENEFITS--CAUSES OF ACTION.-- | 0024| A. No offset shall be allowed against personal | 0025| compensation benefits due based on the value of a cause of | - 30 - 0001| action until after a monetary recovery is made. After | 0002| recovery is made, a deduction from future benefits may be made | 0003| in no more than the amount of the net recovery, exclusive of | 0004| attorney fees, expenses and costs incurred in effecting the | 0005| recovery. | 0006| B. If personal compensation benefits have been | 0007| received, the insurer may require the recipient to repay, out | 0008| of such recovery, an amount equal to the personal compensation | 0009| benefits received but not more than the net recovery, | 0010| exclusive of attorney fees, expenses and costs incurred in | 0011| effecting the recovery. Any remainder of the net recovery | 0012| shall be credited periodically against loss as it accrues, | 0013| until an amount equal to the net recovery has been deducted. | 0014| The insurer shall have a lien on the recovery equal to net | 0015| personal compensation benefits received. | 0016| C. Recovery on a cause of action shall not operate | 0017| to reduce personal compensation benefit coverage limits, which | 0018| shall be paid out in full to the extent economic loss exceeds | 0019| the amount of recovery. | 0020| Section 16. [NEW MATERIAL] PERSONAL COMPENSATION | 0021| BENEFITS--PROMPT PAYMENT.-- | 0022| A. Personal compensation benefits shall be paid as | 0023| loss accrues. Loss accrues when medical expense, loss of | 0024| income from work or replacement services loss occurs or when | 0025| the injured person dies. Notwithstanding any provision of the | - 31 - 0001| New Mexico Insurance Code, personal compensation benefits for | 0002| accrued losses are overdue if not paid within thirty days | 0003| after the insurer receives reasonable proof of the fact and | 0004| the amount of loss; provided that an insurer may accumulate | 0005| claims for periods not exceeding thirty days, in which case | 0006| benefits are not overdue if paid within twenty days after the | 0007| last day of the period of accumulation. If reasonable proof | 0008| is not supplied as to the entire claim, the amount that is | 0009| supported by reasonable proof shall be paid promptly as | 0010| provided in this subsection, and any part of the remainder of | 0011| the claim that is later supported by reasonable proof shall be | 0012| paid promptly in the same manner. | 0013| B. For the purpose of calculating the extent to | 0014| which personal compensation benefits are overdue, payment | 0015| shall be treated as made on the date a draft or other valid | 0016| instrument is placed in the United States mail in a properly | 0017| addressed postpaid envelope or, if not mailed, on the date of | 0018| personal delivery to the insured. | 0019| C. Notwithstanding any provision of the New Mexico | 0020| Insurance Code, if an insurer is found after an administrative | 0021| hearing by the superintendent or upon review by a court of | 0022| competent jurisdiction to be in violation of this section, the | 0023| exclusive remedy shall be the recovery of the personal | 0024| compensation benefits and interest at a rate of twelve percent | 0025| a year beginning from the date the benefits were due, together | - 32 - 0001| with reasonable attorney fees, expenses and costs. In the | 0002| event of an insurer's willful or wanton failure to comply with | 0003| this section, the recovery shall be three times the amount of | 0004| the personal compensation benefits that are overdue, together | 0005| with attorney fees, expenses and costs. | 0006| Section 17. [NEW MATERIAL] ASSIGNMENT OR GARNISHMENT-- | 0007| PERSONAL COMPENSATION BENEFITS EXEMPT.-- | 0008| A. Personal compensation benefits are exempt from | 0009| garnishment, attachment, execution or any other process or | 0010| claim to the extent that wages or earnings are exempt under | 0011| any applicable law. | 0012| B. An agreement for assignment of any right to | 0013| personal compensation benefits payable in the future shall be | 0014| unenforceable except to the extent that: | 0015| (1) benefits are for the cost of medical or | 0016| other health care services, products or facilities provided or | 0017| to be provided by the assignee; or | 0018| (2) benefits for loss of income from work or | 0019| replacement services loss are assigned for payment of alimony, | 0020| maintenance or child support. | 0021| Section 18. [NEW MATERIAL] LIMITATION OF ACTIONS.-- | 0022| A. Subject to the arbitration provisions in | 0023| Section 24 of the Personal Choice Auto Insurance Act, if no | 0024| personal compensation benefits have been paid, an action | 0025| therefor may not be commenced against the insurer later than | - 33 - 0001| two years after the date of the accident causing the injuries. | 0002| B. Subject to the arbitration provisions in | 0003| Section 24 of the Personal Choice Auto Insurance Act, if | 0004| personal compensation benefits have been paid, an action for | 0005| recovery of further personal compensation benefits may be | 0006| commenced no later than two years after the date of the last | 0007| payment of personal compensation benefits; provided that no | 0008| action for personal compensation benefits shall be commenced | 0009| against an insurer more than four years after the date of the | 0010| accident. | 0011| C. The statute of limitations period for personal | 0012| injury provided in Section 37-1-8 NMSA 1978 shall, for a cause | 0013| of action for uncompensated economic loss under the Personal | 0014| Choice Auto Insurance Act, commence on the day after the | 0015| insured has incurred economic loss in excess of fifteen | 0016| thousand dollars ($15,000) or the insured has exhausted his | 0017| policy limits, whichever is earlier. | 0018| Section 19. [NEW MATERIAL] MENTAL AND PHYSICAL | 0019| EXAMINATIONS.-- | 0020| A. If the mental or physical condition of an | 0021| injured person is material to any claim that has been or may | 0022| be made for personal compensation benefits, the injured | 0023| person, upon request of an insurer, shall submit to reasonable | 0024| mental or physical examination by a health care provider | 0025| designated by the insurer at a reasonably convenient time and | - 34 - 0001| location, subject to rules, if any, adopted and promulgated by | 0002| the superintendent. The cost of any such examination shall be | 0003| borne by the insurer and shall not be charged against or | 0004| operate to reduce benefit limits. | 0005| B. If an insurer has requested in writing that an | 0006| injured person submit to mental or physical examination | 0007| pursuant to Subsection A of this section and the person | 0008| refuses to comply, the insurer may, upon at least thirty days' | 0009| prior written notice to the insured, suspend all future | 0010| personal compensation benefits and cease payment of any | 0011| incurred but unpaid portion of bills for services, which such | 0012| examination is intended to verify as medically necessary, | 0013| until the injured person complies with the request. | 0014| Section 20. [NEW MATERIAL] EMPLOYER AND PROVIDER | 0015| REQUIREMENTS--MEDICAL EXPENSE REVIEW.-- | 0016| A. Upon request of an insurer, an employer shall | 0017| furnish a statement of the work record and earnings of an | 0018| injured person who has filed a claim for personal compensation | 0019| benefits. The statement shall cover the period specified by | 0020| the insurer and may include the one-year period before, and | 0021| the entire period after, the date of the accident. | 0022| B. To ensure that the treatment and expenses are | 0023| both reasonable and necessary, insurers may review or obtain a | 0024| review of treatment and expenses prior to, during and after | 0025| the course of treatment of an injured person. | - 35 - 0001| C. Every medical or other health care provider | 0002| providing, before or after an injury upon which a claim for | 0003| personal compensation benefits is based, any services, | 0004| products or facilities in relation to that or any other | 0005| injury, or in relation to a condition claimed to be connected | 0006| with that or any other injury, shall, upon request of the | 0007| insurer against whom the claim has been made, furnish the | 0008| insurer a written report of the history, condition, treatment | 0009| and dates and costs of treatment of the injured person. The | 0010| information shall be provided with a declaration that the | 0011| services, products or facilities rendered were reasonable and | 0012| necessary with respect to the injury sustained and shall | 0013| identify which expenses were incurred as a result of the | 0014| injury. Each medical or other health care provider shall also | 0015| produce in a timely manner and permit the inspection and | 0016| copying of its records regarding such history, condition, | 0017| treatment and the dates and costs thereof. The person | 0018| providing the declaration required under this section shall | 0019| attest to it as follows: "I declare that I have read the | 0020| foregoing and the facts alleged are true, to the best of my | 0021| knowledge and belief.". The cost of obtaining the information | 0022| and records required by this subsection shall be borne by the | 0023| insurer and shall not be charged against or operate to reduce | 0024| benefit limits. | 0025| D. No cause of action for violation of the | - 36 - 0001| physician-patient privilege or invasion of the right of | 0002| privacy shall exist against any medical or other health care | 0003| provider complying with the provisions of this section, but | 0004| the insurer is responsible for ensuring the confidentiality of | 0005| the records in the hands of its officers, employees and | 0006| agents. | 0007| E. A dispute regarding the right to the discovery | 0008| of facts about an injured person by the insurer may be | 0009| resolved through arbitration as provided in Section 24 of the | 0010| Personal Choice Auto Insurance Act or in court proceedings. | 0011| Section 21. [NEW MATERIAL] ASSIGNED CLAIMS PLAN.-- | 0012| A. Insurers, other than self-insurance plans, | 0013| authorized to provide insurance under the Personal Choice Auto | 0014| Insurance Act shall organize, participate in and maintain an | 0015| assigned claims plan to provide benefits equivalent to the | 0016| minimum personal compensation benefits required by that act to | 0017| an injured person covered by that act if the person is not a | 0018| tort chooser or a resident relative of an uninsured motorist | 0019| as defined in Paragraph (5) of Subsection A of Section 8 of | 0020| that act and if: | 0021| (1) personal compensation benefits are | 0022| unavailable, for a reason other than as specified in Section 8 | 0023| of that act; or | 0024| (2) personal compensation benefits are | 0025| unavailable because of the insolvency of an insurer for whose | - 37 - 0001| covered claims the New Mexico property and casualty insurance | 0002| guaranty association is not responsible. | 0003| B. The assigned claims plan shall adopt bylaws and | 0004| rules, and enter into necessary agreements for the operation | 0005| of the plan and the equitable distribution of costs, as | 0006| approved by the superintendent. | 0007| C. Any claim brought through the assigned claims | 0008| plan shall be assigned to an insurer in accordance with the | 0009| plan's bylaws and rules. Upon such assignment, the insurer | 0010| shall have the rights and obligations it would have had if, | 0011| prior to such assignment, it had issued a personal | 0012| compensation policy providing the minimum personal | 0013| compensation coverage required by law. | 0014| D. Any person accepting personal compensation | 0015| benefits under the assigned claims plan shall have the rights | 0016| and obligations the person would have had under a personal | 0017| compensation policy issued to him providing the minimum | 0018| personal compensation coverage required by law. | 0019| E. Benefits available through the assigned claims | 0020| plan shall be reduced to the extent that benefits covering the | 0021| same loss are available from other sources, regardless of the | 0022| nature or number of benefit sources available and regardless | 0023| of the nature or form of the benefits. The plan coverage | 0024| shall be deemed secondary to those sources. | 0025| F. The assigned claims plan and the insurer to | - 38 - 0001| whom the claim is assigned are subrogated, to the extent of | 0002| personal compensation benefits paid for a loss, to all of the | 0003| rights of the claimant against any person liable for the loss | 0004| and against any insurer, its successor in interest or any | 0005| other person or organization legally obligated to provide | 0006| personal compensation benefits to the injured person for the | 0007| loss. | 0008| Section 22. [NEW MATERIAL] INCENTIVES FOR INSUREDS.-- | 0009| Each insurer shall adopt an actuarially sound program that | 0010| provides incentives to a personal compensation chooser in the | 0011| form of increased benefits, reduced premiums or other methods | 0012| to: | 0013| A. purchase motor vehicles equipped with automatic | 0014| seat and harness belts or air bags, but the incentives shall | 0015| not include a provision for a loss of coverage or benefits for | 0016| failure to use the devices; and | 0017| B. have medical expense benefits delivered by a | 0018| managed care program designated by the insurer, but only the | 0019| actual cost of the benefits to the insurer shall be charged | 0020| against the policy limits. | 0021| Section 23. [NEW MATERIAL] RULES.--The superintendent | 0022| may adopt and promulgate rules necessary to provide for the | 0023| effective implementation and administration of the Personal | 0024| Choice Auto Insurance Act that are consistent with its | 0025| purposes. | - 39 - 0001| Section 24. [NEW MATERIAL] ARBITRATION.-- | 0002| A. Any dispute with respect to personal | 0003| compensation benefits between an insurer and an injured | 0004| person, or the dependents or estate of such person, may be | 0005| submitted to arbitration pursuant to the provisions of this | 0006| section if the insurer and the person agree. Only the dispute | 0007| that the parties have agreed to arbitrate may be addressed by | 0008| the arbitration. | 0009| B. Upon agreement for arbitration, the parties may | 0010| agree on a single arbitrator or, if no such agreement can be | 0011| reached, each party shall select a competent arbitrator, and | 0012| the two arbitrators so named shall select a third arbitrator. | 0013| If unable to agree on the third arbitrator within thirty days, | 0014| either party may request a judge of the district court in the | 0015| county in which the arbitration is pending to select the third | 0016| arbitrator. The written decision of the arbitrator, or any | 0017| two arbitrators if a panel of three is used, shall be binding | 0018| on each party. | 0019| C. The cost of any arbitrator or any expert | 0020| witness selected by one party shall be paid by that party. | 0021| The cost of any arbitrator agreed upon by the parties or their | 0022| arbitrators and other expenses of arbitration shall be shared | 0023| equally by both parties. | 0024| D. The arbitration shall take place in the county | 0025| in which the insured resides unless the parties agree to | - 40 - 0001| another location. The Rules of Civil Procedure and Rules of | 0002| Evidence for the District Courts shall apply. | 0003| Section 25. [NEW MATERIAL] OUT-OF-STATE VEHICLES.-- | 0004| A. Each insurer doing business in New Mexico shall | 0005| file with the superintendent, as a condition of its continued | 0006| transaction of business, a form approved by the superintendent | 0007| declaring that any contract of primary motor vehicle | 0008| insurance, wherever issued, covering the operation, | 0009| maintenance or use of a motor vehicle shall be deemed, while | 0010| the motor vehicle is in New Mexico, to provide at least the | 0011| minimum benefits required for a personal compensation policy | 0012| by the Personal Choice Auto Insurance Act. The insured under | 0013| any such policy is deemed to have elected coverage under a | 0014| personal compensation policy, and to have accepted the | 0015| limitations on tort rights and liabilities of the Personal | 0016| Choice Auto Insurance Act. | 0017| B. The provisions of this section do not apply to | 0018| any named insured who, prior to a motor vehicle accident | 0019| within New Mexico, has become a tort chooser pursuant to | 0020| Section 5 of the Personal Choice Auto Insurance Act. With | 0021| respect to such a tort chooser, the bodily injury and property | 0022| damage liability limits of the policy shall be operative, | 0023| subject to conformance with the Mandatory Financial | 0024| Responsibility Act. | 0025| Section 26. Section 59A-7-7 NMSA 1978 (being Laws 1984, | - 41 - 0001| Chapter 127, Section 113) is amended to read: | 0002| "59A-7-7. "VEHICLE" INSURANCE DEFINED.--"Vehicle" | 0003| insurance is insurance covering: | 0004| A. physical damage. Insurance against loss of or | 0005| damage to any land vehicle or aircraft or any draft or riding | 0006| animal resulting from or incident to ownership, maintenance or | 0007| use of any such vehicle, aircraft or animal; | 0008| B. public liability and property damage. | 0009| Insurance against any hazard or cause, and against any loss, | 0010| liability or expense resulting from or incident to ownership, | 0011| maintenance or use of any such vehicle, aircraft or animal; | 0012| C. cargo. Insurance against loss of or damage to | 0013| property contained in a vehicle or being loaded or unloaded | 0014| therein or therefrom or incident to the ownership, maintenance | 0015| or use of any such vehicle, aircraft or animal; ~~[and]~~ | 0016| D. medical payments. Insurance for payment on | 0017| behalf of the injured party or for reimbursement of the | 0018| insured for payment, irrespective of legal liability of the | 0019| insured, of medical, hospital, surgical and disability | 0020| benefits, to persons injured and funeral and death benefits to | 0021| dependents, beneficiaries or personal representatives of | 0022| persons killed as the result of an accident, resulting from or | 0023| incident to ownership, maintenance or use of any such vehicle, | 0024| aircraft or animal. Such coverage shall not be deemed to be | 0025| "health" insurance for purposes of the Insurance Code; and | - 42 - 0001| | 0002| E. the risks and providing the benefits | 0003| described in the Personal Choice Auto Insurance Act." | 0004| Section 27. A new Section 59A-7-7.1 NMSA 1978 is enacted | 0005| to read: | 0006| "59A-7-7.1. [NEW MATERIAL] "MOTOR VEHICLE INSURANCE | 0007| POLICY" DEFINED.--"Motor vehicle insurance policy" means a | 0008| policy of vehicle insurance that covers self-propelled | 0009| vehicles of a kind required to be registered under New Mexico | 0010| law for use on public streets and highways and: | 0011| A. shall include either: | 0012| (1) a motor vehicle bodily injury and | 0013| property damage liability policy in compliance with the | 0014| Mandatory Financial Responsibility Act, together with | 0015| uninsured motorist coverage, subject to the provisions of | 0016| Section 66-5-301 NMSA 1978 permitting the insured to reject | 0017| the coverage; or | 0018| (2) a personal compensation policy as defined | 0019| in the Personal Choice Auto Insurance Act; and | 0020| B. may include: | 0021| (1) physical damage coverage; | 0022| (2) medical payments coverage; and | 0023| (3) other coverages that the insured and the | 0024| insurer agree to include within the policy." | 0025| Section 28. Section 59A-32-3 NMSA 1978 (being Laws 1984, | - 43 - 0001| Chapter 127, Section 521) is amended to read: | 0002| "59A-32-3. PURPOSE OF ASSIGNED RISK PLAN.--The purpose | 0003| of the assigned risk plan is to provide for the equitable | 0004| distribution and apportionment among insurers authorized to | 0005| transact in this state the business of ~~[automobile and]~~ | 0006| personal compensation, motor vehicle bodily injury, property | 0007| damage liability and physical damage insurance, of insurance | 0008| afforded applicants who are in good faith entitled to, but who | 0009| are unable to procure, such insurance through ordinary | 0010| methods." | 0011| Section 29. Section 59A-32-5 NMSA 1978 (being Laws 1984, | 0012| Chapter 127, Section 523) is amended to read: | 0013| "59A-32-5. REQUIREMENTS OF ASSIGNED RISK PLANS.--~~[Any~~ | 0014| ~~such]~~ An agreement or plan for the assignment of risks | 0015| involving ~~[automobile and]~~ personal compensation, motor | 0016| vehicle bodily injury, ~~[and]~~ property damage liability and | 0017| physical damage insurance shall include provision for: | 0018| A. reasonable rules governing the equitable | 0019| distribution of risks by direct insurance, reinsurance or | 0020| otherwise, and by the assignment of risks to insurers | 0021| participating in the plan; | 0022| B. rates and reasonable rate modifications, | 0023| which shall be applicable to such risks and which shall not be | 0024| excessive, inadequate or unfairly discriminatory; | 0025| C. the coverage limits ~~[of liability which]~~ | - 44 - 0001| that any insurer to ~~[whom]~~ which a risk is assigned | 0002| shall be required to assume; and | 0003| D. a method whereby applicants for insurance, | 0004| persons insured and insurers under the plan may have a hearing | 0005| on grievances and the right to appeal from the decision on | 0006| ~~[any such]~~ a grievance to the superintendent." | 0007| Section 30. Section 59A-32-6 NMSA 1978 (being Laws 1984, | 0008| Chapter 127, Section 524) is amended to read: | 0009| "59A-32-6. REVIEW OF PROPOSED ASSIGNED RISK PLANS.-- | 0010| Every ~~[such]~~ plan for the assignment of risks involving | 0011| ~~[automobile and]~~ personal compensation, motor vehicle | 0012| bodily injury, ~~[and]~~ property damage liability and physical | 0013| damage insurance shall be filed in writing with the | 0014| superintendent. The superintendent shall review the plan as | 0015| soon as reasonably possible after filing, to determine whether | 0016| or not it meets the requirements of Section ~~[523 of this~~ | 0017| ~~article]~~ 59A-32-5 NMSA 1978. Each plan shall be on file | 0018| with the superintendent for a waiting period of thirty | 0019| ~~[(30)]~~ days before it becomes effective, unless sooner | 0020| approved in writing. Unless disapproved in writing by the | 0021| superintendent within the thirty ~~[(30)]~~ day waiting period, | 0022| a plan shall be deemed approved and shall become effective | 0023| upon the expiration of that period." | 0024| Section 31. Section 59A-32-8 NMSA 1978 (being Laws 1984, | 0025| Chapter 127, Section 526) is amended to read: | - 45 - 0001| "59A-32-8. FAILURE TO FILE PLAN--ASSIGNED RISK PLAN | 0002| PRESCRIBED.--If no plan ~~[which]~~ that meets the | 0003| requirements of Section ~~[523 of this article above]~~ 59A-32- | 0004| 5 NMSA 1978 has been filed with the superintendent within | 0005| ninety ~~[(90)]~~ days after ~~[June 30, 1959]~~ the effective | 0006| date of the Personal Choice Auto Insurance Act, or within the | 0007| period stated in ~~[any]~~ an order ~~[which]~~ that | 0008| disapproves an existing plan, the superintendent may formulate | 0009| and prescribe a plan ~~[which]~~ that does meet ~~[such]~~ | 0010| those requirements, after hearing or consultation with | 0011| insurers authorized to transact in this state the business of | 0012| ~~[automobile and]~~ personal compensation, motor vehicle | 0013| bodily injury, ~~[and]~~ property damage liability and physical | 0014| damage insurance. When ~~[any]~~ a plan ~~[or plans]~~ or | 0015| amendment ~~[thereto]~~ to it has ~~[or have]~~ been approved or | 0016| prescribed, no insurer to which ~~[such]~~ the plan is | 0017| applicable shall thereafter issue ~~[any]~~ a policy of | 0018| ~~[such]~~ insurance, or undertake to transact ~~[such]~~ business | 0019| in this state, unless the insurer participates in ~~[such]~~ | 0020| the plan." | 0021| Section 32. Section 66-5-208 NMSA 1978 (being Laws 1978, | 0022| Chapter 35, Section 282, as amended) is amended to read: | 0023| "66-5-208. EVIDENCE OF FINANCIAL RESPONSIBILITY--AMOUNTS | 0024| AND CONDITIONS.--~~["Evidence of financial responsibility"]~~ As | 0025| used in the Mandatory Financial Responsibility Act, "evidence | - 46 - 0001| of financial responsibility" means: | 0002| A. evidence of the ability to respond in damages | 0003| for liability, on account of accidents occurring subsequent to | 0004| the effective date of the evidence, arising out of the | 0005| ownership, maintenance or use of a vehicle of a type subject | 0006| to registration under the laws of New Mexico, in the following | 0007| amounts: | 0008| ~~[A. twenty-five thousand dollars ($25,000)]~~ | 0009| (1) fifteen thousand dollars ($15,000) because of bodily | 0010| injury to or death of one person in ~~[any one]~~ a single | 0011| accident; | 0012| ~~[B.]~~ (2) subject to ~~[this]~~ the limit | 0013| for one person, ~~[fifty thousand dollars ($50,000)]~~ thirty | 0014| thousand dollars ($30,000) because of bodily injury to or | 0015| death of two or more persons in ~~[any one]~~ a single | 0016| accident; | 0017| ~~[C.]~~ (3) ten thousand dollars ($l0,000) | 0018| because of injury to or destruction of property of others in | 0019| ~~[any one]~~ a single accident; and | 0020| ~~[D.]~~ (4) if evidence is in the form of a | 0021| surety bond or a cash deposit, the total amount shall be | 0022| ~~[sixty thousand dollars ($60,000)]~~ forty thousand dollars | 0023| ($40,000); or | 0024| B. evidence of a valid personal compensation | 0025| policy as specified in the Personal Choice Auto Insurance | - 47 - 0001| Act." | 0002| Section 33. Section 66-5-209 NMSA 1978 (being Laws 1978, | 0003| Chapter 35, Section 283, as amended) is amended to read: | 0004| "66-5-209. MEANING OF "JUDGMENT".--~~["Judgment"]~~ As | 0005| used in the Mandatory Financial Responsibility Act, | 0006| "judgment" means any judgment ~~[which]~~ that becomes final | 0007| by expiration without appeal of the time within which an | 0008| appeal might have been perfected or by final affirmation on | 0009| appeal rendered by a court of competent jurisdiction of any | 0010| state or of the United States, upon a cause of action, as | 0011| limited by the Personal Choice Auto Insurance Act, arising | 0012| out of the ownership, maintenance or use of any motor vehicle | 0013| of a type subject to registration ~~[under]~~ pursuant to the | 0014| laws of New Mexico, for damages, including damages for care | 0015| and loss of services, because of bodily injury to or death of | 0016| any person or for damages because of injury to or destruction | 0017| of property, including ~~[the]~~ its loss of use, ~~[thereof]~~ | 0018| or upon a cause of action on an agreement of settlement for | 0019| such damages. "Judgment" does not include any amount | 0020| recoverable as uncompensated economic loss pursuant to the | 0021| Personal Choice Auto Insurance Act." | 0022| Section 34. Section 66-5-215 NMSA 1978 (being Laws 1978, | 0023| Chapter 35, Section 298, as amended) is amended to read: | 0024| "66-5-215. PAYMENTS SUFFICIENT TO SATISFY REQUIREMENTS.-- | 0025| A. Judgments herein referred to shall, for the | - 48 - 0001| purpose of the Mandatory Financial Responsibility Act only, be | 0002| deemed satisfied when: | 0003| (1) ~~[twenty-five thousand dollars~~ | 0004| ~~($25,000)]~~ fifteen thousand dollars ($15,000) has been | 0005| credited upon any judgment or judgments rendered in excess of | 0006| that amount because of bodily injury to or death of one person | 0007| as the result of any one accident; | 0008| (2) subject to the limit of ~~[twenty-five~~ | 0009| ~~thousand dollars ($25,000)]~~ fifteen thousand dollars | 0010| ($15,000) because of bodily injury to or death of one person, | 0011| the sum of ~~[fifty thousand dollars ($50,000)]~~ thirty | 0012| thousand dollars ($30,000) has been credited upon any | 0013| judgment ~~[or judgments]~~ rendered in excess of that amount | 0014| because of bodily injury to or death of two or more persons as | 0015| the result of any one accident; or | 0016| (3) ten thousand dollars ($l0,000) has been | 0017| credited upon any judgment ~~[or judgments]~~ rendered in excess | 0018| of that amount because of injury to or destruction of property | 0019| of others as a result of any one accident. | 0020| B. However, payments made in settlements of any | 0021| claims because of bodily injury, death or property damage | 0022| arising from the accident shall be credited in reduction of | 0023| the amounts provided for in this section." | 0024| Section 35. Section 66-5-224 NMSA 1978 (being Laws 1978, | 0025| Chapter 35, Section 309, as amended) is amended to read: | - 49 - 0001| "66-5-224. ACT NOT TO AFFECT OTHER POLICIES.-- | 0002| A. The Mandatory Financial Responsibility Act does | 0003| not apply to or affect policies of motor vehicle insurance | 0004| ~~[against liability which]~~ that may now or hereafter be | 0005| required by any other law of New Mexico, except the Personal | 0006| Choice Auto Insurance Act, and such policies, if they contain | 0007| an agreement or are endorsed to conform with the requirements | 0008| of the Mandatory Financial Responsibility Act, may be | 0009| considered as evidence of financial responsibility ~~[under]~~ | 0010| pursuant to that act. | 0011| B. The Mandatory Financial Responsibility Act does | 0012| not apply to or affect policies insuring solely the insured | 0013| named in the policy against liability resulting from the | 0014| maintenance or use by persons in the insured's employ or on | 0015| his behalf of motor vehicles not owned by the insured." | 0016| Section 36. Section 66-5-226 NMSA 1978 (being Laws 1955, | 0017| Chapter 182, Section 330, as amended) is amended to read: | 0018| "66-5-226. CASH DEPOSIT AS EVIDENCE.--Evidence of | 0019| financial responsibility may be demonstrated by the | 0020| certificate of the state treasurer that the person named in | 0021| the certificate has deposited with him ~~[sixty thousand~~ | 0022| ~~dollars ($60,000)]~~ forty thousand dollars ($40,000) in | 0023| cash." | 0024| Section 37. Section 66-5-301 NMSA 1978 (being Laws 1978, | 0025| Chapter 35, Section 325, as amended) is amended to read: | - 50 - 0001| "66-5-301. INSURANCE AGAINST UNINSURED AND UNKNOWN | 0002| MOTORISTS--REJECTION OF COVERAGE BY THE INSURED.-- | 0003| A. No motor vehicle ~~[or automobile]~~ bodily | 0004| injury and property damage liability policy ~~[insuring~~ | 0005| ~~against loss resulting from liability imposed by law for~~ | 0006| ~~bodily injury or death suffered by any person and for injury~~ | 0007| ~~to or destruction of property of others arising out of the~~ | 0008| ~~ownership, maintenance or use of a motor vehicle]~~ shall be | 0009| delivered or issued for delivery in New Mexico with respect to | 0010| any motor vehicle registered or principally garaged in New | 0011| Mexico unless coverage is provided therein or supplemental | 0012| thereto in minimum limits for bodily injury or death and for | 0013| injury to or destruction of property as set forth in Section | 0014| 66-5-215 NMSA 1978 and such higher limits as may be desired by | 0015| the insured, but up to the limits of liability specified in | 0016| bodily injury and property damage liability provisions of the | 0017| insured's policy, for the protection of persons insured | 0018| thereunder who are legally entitled to recover damages from | 0019| owners or operators of uninsured motor vehicles because of | 0020| bodily injury, sickness or disease, including death, and for | 0021| injury to or destruction of property resulting therefrom | 0022| according to the rules and regulations promulgated by, and | 0023| under provisions filed with and approved by, the | 0024| superintendent of insurance. | 0025| B. The uninsured motorist coverage described in | - 51 - 0001| Subsection A of this section shall include underinsured | 0002| motorist coverage for persons protected by an insured's | 0003| policy. For the purposes of this subsection, "underinsured | 0004| motorist" means an operator of a motor vehicle with respect to | 0005| the ownership, maintenance or use of which the sum of the | 0006| limits of liability under all bodily injury liability | 0007| insurance applicable at the time of the accident is less than | 0008| the limits of liability under the insured's uninsured motorist | 0009| coverage. ~~[No motor vehicle or automobile liability policy~~ | 0010| ~~sold in New Mexico shall be required to include underinsured~~ | 0011| ~~motorist coverage until January 1, 1980.]~~ A personal | 0012| compensation insured under the Personal Choice Auto Insurance | 0013| Act is not an underinsured motorist except to the extent a | 0014| claim is made for uncompensated economic loss against the | 0015| motorist, as provided in that act, that exceeds the coverage | 0016| limit under the personal compensation policy. | 0017| C. Unless a named insured makes an express | 0018| election to stack uninsured motorist coverage limits for two | 0019| or more motor vehicles by adding such limits together, the | 0020| limits shall not be stacked. An insurer shall notify its | 0021| policyholders in writing that they may elect to stack | 0022| uninsured motorist coverage limits. | 0023| ~~[C.]~~ D. The uninsured motorist coverage shall | 0024| ~~[provide an exclusion]~~ exclude coverage of not more than | 0025| the first ~~[two hundred fifty dollars ($250)]~~ five hundred | - 52 - 0001| dollars ($500) of loss resulting from injury to or | 0002| destruction of property of the insured in any one accident | 0003| and may exclude coverage of punitive or exemplary damages. | 0004| The named insured shall have the right to reject uninsured | 0005| motorist coverage ~~[as]~~ described in ~~[Subsections A and B~~ | 0006| ~~of]~~ this section ~~[provided that]~~ but, unless the named | 0007| insured requests ~~[such]~~ that coverage in writing, ~~[such~~ | 0008| ~~coverage]~~ it need not be provided in or supplemental to a | 0009| renewal policy where the named insured has rejected the | 0010| coverage in connection with a policy previously issued to him | 0011| by the same insurer. | 0012| E. Uninsured motorist coverage for injury to or | 0013| destruction of property extends only to the vehicle described | 0014| in the policy and to property not otherwise insured carried in | 0015| or upon the vehicle." | 0016| Section 38. TEMPORARY PROVISION--TRANSITION OF RENEWAL | 0017| POLICIES.--Each motor vehicle insurance policy in effect on | 0018| the effective date of the Personal Choice Auto Insurance Act | 0019| shall become subject to the provisions of that act on its | 0020| first succeeding renewal date. At least thirty days before | 0021| the policy renewal date, the motor vehicle insurer shall | 0022| notify the policyholder of the new limitations on tort rights | 0023| and liabilities and shall provide information on obtaining the | 0024| appropriate form to reject the limitations. At that time, the | 0025| motor vehicle insurer shall also afford the policyholder the | - 53 - 0001| opportunity to purchase the optional coverages specified in | 0002| Section 4 of the Personal Choice Auto Insurance Act. If the | 0003| policyholder does not request any optional coverage prior to | 0004| the renewal date of the policy and does not inform the insurer | 0005| that he is a tort chooser, the policy shall be reissued as a | 0006| personal compensation policy with personal compensation | 0007| benefits equal to the medical payments coverage previously | 0008| selected by the insured, but in no event less than fifteen | 0009| thousand dollars ($15,000). If the insurer does not offer | 0010| personal compensation benefits in an amount equal to the | 0011| insured's previous medical payments limit, then the insurer | 0012| shall provide the available limit that is nearest, but not | 0013| less than, the previous medical payments limit. All other | 0014| coverages previously purchased by a named insured shall remain | 0015| in effect; provided that motor vehicle insurers may delete any | 0016| coverage that would substantially duplicate personal | 0017| compensation benefits, including uninsured motorist coverage | 0018| and disability coverage. If the policyholder requests any | 0019| optional coverage, the requested coverage shall be effective | 0020| on the reissue date of the policy if the request is received | 0021| by the motor vehicle insurer prior to the renewal date of the | 0022| policy. If received on or after the reissue date, the | 0023| requested coverage shall be effective at 12:01 a.m. on the day | 0024| after the request is received. | 0025| Section 39. TEMPORARY PROVISION--COST SAVINGS TO | - 54 - 0001| CONSUMERS.-- | 0002| A. Each insurer that writes motor vehicle | 0003| insurance policies shall file policy forms and rates for | 0004| personal compensation policies and motor vehicle bodily injury | 0005| and property damage liability policies, including tort | 0006| coverage, with the superintendent of insurance no later than | 0007| sixty days before the effective date of the provisions of the | 0008| Personal Choice Auto Insurance Act, for review and approval | 0009| pursuant to Chapter 59A, Article 17 NMSA 1978. | 0010| B. Each insurer's statewide average premium for a | 0011| personal compensation policy with minimum required benefits | 0012| during the first year following the effective date of the | 0013| Personal Choice Auto Insurance Act shall be at least thirty | 0014| percent less than the insurer's statewide average premium for | 0015| calendar year 1997 for mandatory insurance coverage, unless | 0016| the insurer first demonstrates at a rate hearing that such a | 0017| decrease will result in inadequate rates. For the purposes of | 0018| this subsection, "mandatory insurance coverage" means the | 0019| minimum limits for bodily injury and property damage liability | 0020| set forth in Section 66-5-215 NMSA 1978 immediately prior to | 0021| the effective date of this act and the minimum uninsured and | 0022| underinsured motorist coverage set forth in Section 66-5-301 | 0023| NMSA 1978. | 0024| C. Prior to the effective date of the provisions | 0025| of the Personal Choice Auto Insurance Act, the superintendent | - 55 - 0001| of insurance may adopt and promulgate rules, approve proposed | 0002| policy forms and review and approve insurance rates for | 0003| coverages to be made available pursuant to that act. | 0004| Section 40. SEVERABILITY.-- | 0005| A. Except as provided otherwise in Subsection B of | 0006| this section, if any provision of the Personal Choice Auto | 0007| Insurance Act or the application thereof to any person, | 0008| organization or circumstance is held to be unconstitutional or | 0009| otherwise invalid, the remainder of that act and the | 0010| application of such provision to other persons or | 0011| circumstances shall not be affected. | 0012| B. If Section 12 of the Personal Choice Auto | 0013| Insurance Act is found to be unconstitutional or invalid, in | 0014| whole or in part, it is to be conclusively presumed that the | 0015| legislature would not have enacted the remainder of this act | 0016| without those limitations and that act shall not be severable | 0017| and shall be invalid. | 0018| Section 41. EFFECTIVE DATE.--The effective date of the | 0019| provisions of: | 0020| A. Sections 1 through 38 of this act is July 1, | 0021| 1999; and | 0022| B. Sections 39 and 40 of this act is July 1, 1998. | 0023| | 0024| |